Merged: Continental and United Tie The Knot | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Recent Daily Episodes

Episode Date

Monday

Tuesday

Wednesday

Thursday

Friday

Airborne On ANN

Airborne 12.05.16

Airborne 12.06.16

Airborne 11.30.16

Airborne 12.01.16

Airborne 12.02.16

Airborne Hi-Def On YouTube

Airborne 12.05.16

Airborne 12.06.16

Airborne 11.30.16

Airborne 12.01.16

Airborne 12.02.16

Mon, May 03, 2010

Merged: Continental and United Tie The Knot

Matchup Yields Biggest Airline In The Biz... and Possible Woes For Consumers

While most of us were trying to enjoy the weekend, the powers-that-be at United and Continental were reportedly cooking up a deal that was completed Sunday afternoon to merge the two companies to create the world's 'Largest' airline. The estimated $3.7 Billion dollar stock purchase would allow UAL to buy the entire stock of Continental in an all-stock transaction that is expected to close before the end of the year and will retain United's brand name. The combined value of the two companies is estimated at well over $8 Billion.

As we understand it, the announcement is likely to be made later today (Monday) and would install Continental Boss, Jeffery A. Smisek, as the head of the new company, while United’s chairman, Glenn F. Tilton, would be nonexecutive chairman for two years. Mr. Smisek will take of the role of executive chairman, thereafter.

The new entity's HQ remains in Chicago in UAL's current digs and will result in a fleet of some 700 aircraft and over 88,000 staffers. United shareholders allegedly will hold a 55% majority of the stock in the new venture. Simultaneously; like Eastern, PanAm and Braniff airlines before them, a once powerful airline brand will cease to be part of the aviation lexicon.

Industry analysts see the move as a probable win for UAL/Continental and a possible loss for the flying consumer who has had to put up with increasing fees, higher ticket prices and a significant decline in customer service and decorum... the combined merger provides little incentive for these airlines to make any inroads in matters of interest/importance to the flying public and history suggests that the merger will not result in positive benefits for same. Analysis of the impact on UAL and Continental staffing  remains mixed.

ANN will analyze the details expected to be made public throughout the day and furnish further updates as they become available.

FMI: www.united.com, www.continental.com, www.dot.gov
 

Advertisement

More News

Barnstorming: Saving Santa Monica¬Ö and Enhancing The Future of Aviation

As If We Didn’t Have Enough to Do, Another Critical Challenge Demands Our Full Attention It has been a brutal few weeks… starting with the loss of our dear friend, Bob>[...]

VSS Unity, The New SpaceShipTwo, Free-Flies For The First Time

Two Years After Tragedy, The Program Proves It Still Has The Right Stuff The newest SpaceShipTwo has flown free for the first time. According to the Virgin Galactic crew, "Our new >[...]

AMA Opposes Orlando City Council Drone Ordinance

Proposal Runs Afoul Of Federal Authority Over The Nation’s Airspace... The Academy of Model Aeronautics (AMA) sent a letter to the Orlando City Council in opposition to a pro>[...]

Aero-News: Quote of the Day (12.05.16)

"This represents culmination of many years of hard work and perseverance by the team here in the USA and back at base in Germany too, we’re literally over the moon.” So>[...]

AeroSports Update: AutoGyro Now Type Certificated In The U.S.

The FAA Has Granted Type Certification To AutoGyro For Its Factory-Built Calidus Aircraft It seems we hear a lot about new FAA type certification of airliners and corporate jets, b>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2016 Web Development & Design by Pauli Systems, LC